NEITI Supports Federal Government’s Revocation of 1,263 Mineral Licences

The Nigeria Extractive Industries Transparency Initiative (NEITI) has expressed strong support for the Federal Government’s decision to revoke 1,263 mineral licences over non-payment of statutory fees and royalties.

The licences, covering exploration, quarrying, small-scale mining, and full mining leases, were cancelled by the Ministry of Solid Minerals Development following recommendations from the Mining Cadastral Office (MCO).

The affected operators had failed to meet their financial obligations despite repeated notices and a 30-day grace period published in the Federal Government Gazette.

According to official figures, the revoked titles include 584 exploration licences, 470 small-scale mining leases, 144 quarry licences, and 65 mining leases.

This latest round brings the total number of mineral titles revoked under the current administration to 3,794, with earlier cancellations linked to dormancy and repeated defaults.

NEITI welcomed the move, describing it as bold, timely, and consistent with its findings in recent industry reports.

The agency noted that non-payment of fees and royalties has been a persistent problem, undermining government revenue and discouraging credible investment in the sector.

Its 2023 Solid Minerals Report revealed that 1,619 companies owed ₦680.3 million in unpaid fees and royalties. In 2021, 238 companies with 289 valid licences had outstanding debts of over ₦1 billion, while in 2020, more than 2,000 companies owed ₦2.76 billion.

By endorsing the revocation, NEITI stressed that mineral licences are not speculative assets but legal instruments tied to clear financial and operational obligations. It argued that stricter enforcement will help improve transparency, boost government earnings, and make room for genuine investors with the capacity to develop Nigeria’s vast mineral resources.

Industry analysts believe the action could reshape the sector by discouraging title hoarding and strengthening regulatory oversight.

However, they also warn that government must balance enforcement with support for serious operators to ensure the country’s mining industry remains attractive to investment.